Silver Slides 5.5% as US Inflation Data Revives Fed Hike Expectations
Silver has slipped below $63.50 to approximately $63.30 as hotter-than-expected US PPI data and escalating Middle East tensions push the probability of a near-term Fed rate hike above 72%. Analysts warn that the industrial nature of silver makes it particularly vulnerable to this macro environment, with TD Securities highlighting increased pressure on cyclical precious metals.
GN auto markets/commodities data indicates silver has broken below the $63.50 support level, trading near $63.30 during Asian hours. TD Securities notes that industrial precious metals are facing significant headwinds as rising interest rates and weakening base metals weigh on the broader complex.
Source: GN auto markets/commodities: silver pricesFresh coverage from GN auto markets/commodities highlights that Asian session trading has seen gold dip toward $4,320, driven by August US PPI data that beat expectations at 5.4% year-over-year. This stronger inflation print, coupled with geopolitical tensions involving Iran and the Strait of Hormuz, has pushed market odds for a Fed rate hike next week up to 70%.
Source: GN auto markets/commodities: gold pricesSilver prices dropped 5.5% to $63.62 per ounce on Thursday. Gold fell 1.8% to $4,318.60. Stronger US producer inflation and an ECB rate hike drove the decline.
Source: GN auto markets/bonds: interest rates
